Correlation Between Simon Property and PennantPark Floating
Can any of the company-specific risk be diversified away by investing in both Simon Property and PennantPark Floating at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Simon Property and PennantPark Floating into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Simon Property Group and PennantPark Floating Rate, you can compare the effects of market volatilities on Simon Property and PennantPark Floating and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Simon Property with a short position of PennantPark Floating. Check out your portfolio center. Please also check ongoing floating volatility patterns of Simon Property and PennantPark Floating.
Diversification Opportunities for Simon Property and PennantPark Floating
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Simon and PennantPark is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Simon Property Group and PennantPark Floating Rate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PennantPark Floating Rate and Simon Property is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Simon Property Group are associated (or correlated) with PennantPark Floating. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PennantPark Floating Rate has no effect on the direction of Simon Property i.e., Simon Property and PennantPark Floating go up and down completely randomly.
Pair Corralation between Simon Property and PennantPark Floating
Considering the 90-day investment horizon Simon Property Group is expected to generate 0.92 times more return on investment than PennantPark Floating. However, Simon Property Group is 1.09 times less risky than PennantPark Floating. It trades about 0.18 of its potential returns per unit of risk. PennantPark Floating Rate is currently generating about 0.0 per unit of risk. If you would invest 17,670 in Simon Property Group on November 28, 2024 and sell it today you would earn a total of 754.00 from holding Simon Property Group or generate 4.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Simon Property Group vs. PennantPark Floating Rate
Performance |
| Timeline |
| Simon Property Group |
| PennantPark Floating Rate |
Simon Property and PennantPark Floating Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Simon Property and PennantPark Floating
The main advantage of trading using opposite Simon Property and PennantPark Floating positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Simon Property position performs unexpectedly, PennantPark Floating can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in PennantPark Floating will offset losses from the drop in PennantPark Floating's long position.| Simon Property vs. Federal Realty Investment | Simon Property vs. Agree Realty | Simon Property vs. National Retail Properties | Simon Property vs. Kimco Realty |
| PennantPark Floating vs. Gladstone Investment | PennantPark Floating vs. Horizon Technology Finance | PennantPark Floating vs. Stellus Capital Investment | PennantPark Floating vs. Prospect Capital |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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